Royal Bank of Scotland (RBS), which is 81%-owned by the UK Government, has closed its retail structured product business citing high capital costs.
The closure is part of RBS’s plan to reduce its balance sheet to below £80 billion, on a Basel III basis by the end of 2014.
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It is also exiting equity derivatives as well as peripheral market-making activities.
After Dutch lender Rabobank Groep and Switzerland’s Basler Kantonalbank (BSKP), RBS is the third European bank to close its structured products business since March this year.
RBS said that its Markets division will now focus on its core fixed income product strengths across rates, currencies, asset backed products and credit and debt capital markets.
"By concentrating our resources on our strongest products and services, we will ensure we are well positioned to support our global client franchise and succeed in a changing regulatory environment," the bank said.
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